Medical professionals to discuss toll of Valeant, Turing drug price spikes

By Sarah N. Lynch
WASHINGTON, Dec 9 (Reuters) - A pediatric doctor in Alabama
had to scramble to find a less expensive supply of a lifesaving
drug to treat an infant who was suffering from a parasitic
infection.
In Utah, a hospital has been forced to change the way it
stocks a drug critical to treating patients with heart
conditions after the cost sky-rocketed from $440 to $2,700 a
vial.
These are just two of the stories that a U.S. Senate panel
will hear on Wednesday at a hearing that will explore why
certain off-patent prescriptions made by companies like Valeant
Pharmaceuticals VRX.TO and Turing Pharmaceuticals have shot up
after they acquired the rights to sell the drugs.
The U.S. Senate's Special Committee on Aging announced last
month it was launching an investigation into drug pricing and
the role that mergers and acquisitions may be playing in price
hikes.
The committee is reviewing price increases for Valeant's two
heart drugs Isuprel and Nitropress, as well as Turing's price
increase on Daraprim, a drug used to treat a disease called
toxoplasmosis that affects AIDS patients and pregnant women.
Senator Claire McCaskill of Missouri, the panel's ranking
Democrat, said in prepared remarks that she wants to make sure
companies are not taking advantage of the system by seeking
"deep profits while contributing little or nothing to advances
in medical treatment."
Drug pricing has come under wider scrutiny in the last few
months, not only from U.S. lawmakers, but also from U.S.
prosecutors and Democratic presidential candidates.
Valeant is facing probes from U.S. prosecutors over prices,
distribution and prescription assistance programs, while Turing
is under investigation by the New York state attorney general
for antitrust concerns. The increased scrutiny over high U.S.
drug prices has also taken a toll on the industry's stocks.
Wednesday is the first in what is expected to be a series of
hearings on drug price spikes.
The committee asked both companies to turn over documents
for the investigation by Dec. 2, and the chief executives may be
called to testify at a future date.
Congress is nearing the end of its session for the year, and
will resume holding hearings on the subject in 2016.
Valeant said it was cooperating with the committee,
including providing requested documents.
"Valeant markets more than 200 prescription drugs ... so
broad conclusions about the company's pricing cannot be drawn
from any one drug or set of drugs," spokeswoman Laurie Little
said in an emailed statement.
Turing did not immediately respond to a request for comment.
Wednesday's hearing was to feature medical professionals who
would testify about the impact of drug price increases.
Erin Fox, a director at the University of Utah Health Care,
said in prepared remarks that the hospital is struggling to cope
with Valeant's drug price increases.
"If we continued to purchase the same amount of each drug,
it would cost our organization just over $1.6 million more for
isoproterenol and approximately $290,000 more for nitroprusside
compared to what we paid the previous year," Fox said. Both
drugs are used to treat heart conditions.
David Kimberlin, a pediatric infectious disease doctor in
Alabama, will also discuss the challenges he has faced after the
cost of Daraprim rose from $13.50 a pill to $750 and how it is
now only available at Walgreens specialty pharmacies.
"Our pharmacy cannot acquire the drug from the Walgreens
Specialty Pharmacy due to restrictions in the sale of
medications from one pharmacy to another," he said.